Why carbon avoidance is the missing piece in circular economy finance
Tech manufacturers are under mounting pressure to address Scope 3 emissions — and the majority of that footprint sits at product end-of-life. Yet until recently, the companies doing the most to reduce those emissions — electronics recyclers, refurbishers, and ITAD providers — had no financial mechanism to prove, claim, or monetise their impact.
Carbon avoidance credits change that equation.
By quantifying the emissions avoided through device reuse and materials recycling, carbon avoidance credits create a direct financial link between circular activity and climate value. For the first time, the environmental benefit of keeping a laptop in use or recovering copper from a circuit board can be measured, verified, and traded — turning circularity from a cost into a revenue stream.
The opportunity is significant. Research suggests that circular solutions could address up to 45% of global emissions linked to products and materials. But capturing that value requires infrastructure: verified methodologies, independent auditing, and market-grade registries that can withstand scrutiny from OEMs, investors, and regulators alike.
That is what this white paper explores.
Bloom’s September 2024 white paper examines how carbon avoidance credits can accelerate circular economy profitability — covering the mechanics of Scope 3 end-of-life emissions, the commercial case for IT reuse and recycling, and the market infrastructure needed to make circular climate value tradeable at scale.